Daily Management Review

US banks record record inflow of deposits


According to the Wall Street Journal, which analyzed the data of the Federal Deposit Insurance Corporation (FDIC), deposits in US banks for the first quarter grew by $ 1 trillion in total, which is record quarterly dynamics. More than half of the new deposits ($ 590 billion) were attracted by the four largest US retail banks - JP Morgan Chase, Bank of America, Citigroup, Wells Fargo.

Market participants and experts believe that the influx of deposits into American banks during the economic crisis because of the coronavirus can be explained by the fact that, unlike the financial crisis of 2008, now banks are not the primary source of problems for the economy - therefore, many consumers and companies prefer to apply for their service and save their money, waiting for difficult times. Currently, FDIC insurance extends to deposits of no more than $ 250 thousand. “We believe that companies see us as a refuge for assets in this difficult period,” said Paul Donofrio, CFO of Bank of America last week.

In the United States, more than 869 thousand people are infected with coronavirus, almost 50 thousand died. In the world, COVID-19 was confirmed in 2.7 million people, 191 thousand died, 743 thousand recovered.

source: bloomberg.com